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The Company is in the business of the exploration, development and, if warranted, the mining of properties containing molybdenum, as well as silver, gold, base metals and other specialty metals.
Moly is an important part of stainless steel, other alloys...a strategic commodity.
I have accumulated a long position and IMHO this is a winner. The facts: A major investment by a Chinese company puts this mining project on track. General Moly Inc. expects to begin construction of its Mount Hope molybdenum mine in early 2011, with production scheduled to begin 20 months later. The project had been on a slow track until General Moly reached agreement with Sichuan Hanlong Group, the Chinese company will make an $80 million equity investment in General Moly, taking a 25 percent stake in the company and will also arrange for a $665 million loan from a Chinese bank, including $20 million to get Mount Hope jump-started. Sichuan Hanlong Group made a five-year commitment to buy all the molybdenum produced by the mine that isn't already promised to other buyers.Molybdenum is used an alloy to produce stainless steel. Four international steelmakers – POSCO, ArcelorMittal, SeAH Besteel and Sojitz Corp. – previously signed on to purchase molybdenum from the northern Nevada project. Bruce Hansen, chief executive officer of General Moly, called the deal with Sichuan Hanlong Group "a defining and transforming event" for his company. He said the company now has all of the financing in place to complete the mine, which carries a price tag of slightly more than $1 billion. The Mount Hope property is believed to be one of the world's largest deposits of molybdenum. Geologists estimate the property's resource at 1.3 billion pounds of molybdenum, and the mine is expected to be in production for at least 40 years. The market believes the price of Moly will improve however, we are still waiting on the Chinese to get their permits in order, the water rights issue to be settled and GMO's permits to be approved. It appears that most investors are accumulating for the long term (as I am) now It's just a matter of time before the digging begins.
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